While a proposal for a national minimum wage of 22 francs
per hour looks likely to fail, the outcome of the vote on the
government’s acquisition of Saab’s new Gripen jets is still too
close to call, according to the most recent polls by gfs.bern.

“You can expect the participation to be higher than
usual,” said Andreas Ladner, professor of public administration
at the University of Lausanne. “Because the topics mobilize
different groups, it’s hard to say in advance what the outcome
will be.”

Voting ends at noon local time and results are expected
later in the day. Most Swiss will cast their ballots by mail.
Voter turnout averaged about 40 percent in recent decades.

Today’s referendums follow a series of initiatives --
including on executive pay and immigration -- that businesses
say will stunt economic growth and make the country less
attractive as a base for multinational corporations such Kuehne
& Nagel International AG.

If accepted, the minimum wage initiative, launched by the
biggest trade unions and opposed by business lobby
Economiesuisse, would add to the recent barrage of business-unfriendly measures.

Economic Damage

Only one in ten full-time workers in Switzerland earns less
than the 4,000 franc monthly minimum stipulated by the
initiative, according to official data. Restaurant and beauty
salon workers, as well as shop assistants, are among the sectors
most affected. The median wage in the Swiss private sector was
6,118 francs last year, according to statistics office data.

The government argued the minimum wage would damage the
economy, home to banks such as UBS AG and Credit Suisse Group AG
and pharmaceutical companies Roche AG and Novartis AG, and where
small and medium-sized businesses generate two thirds of
employment. These smaller companies, particularly in rural
areas, would have trouble raising pay to that level, it said.

As for the aircraft purchase, the government says it’s
necessary for Switzerland to replace its fleet of Northrop
Grumman Corp. F-5 Tigers. Critics say the jets have a lifetime
price tag of 10 billion francs -- money that could instead be
used for education, transport or pensions.

The Swiss order is important to Saab because development of
the next-generation Gripen E is contingent on an export order of
at least 20 planes. Even so, Saab should meet that criteria
thanks to beating Boeing Co. last year to develop 36 jets for
Brazil’s air force in a deal worth $4.5 billion.

The Swiss Defense Ministry said it will honor result of the
vote and will only comment further upon its outcome, spokesman
Peter Minder said by telephone.